Super Bowl Home Rentals and Insurance

WeÃ¢â‚¬â„¢re not football people, so the fact that the Super Bowl is happening in our back yard in New Jersey in early February, hasnÃ¢â‚¬â„¢t registered yet.

However, the Insurance Information Institute (I.I.I.) just issued a press release that got us thinking, not just about touchdowns and field goals.

Before we look into renting out our house to Super Bowl fans, the I.I.I. cautions us and other like-minded homeowners to first contact our insurer to make sure weÃ¢â‚¬â„¢re covered if our property is damaged or if someone is injured.

Apparently the market for properties near the Stadium in East Rutherford, New Jersey, eight miles west of mid-town Manhattan, is booming on peer-to-peer rental websites. Short-term rental prices for homes typically soar when the Super Bowl or other high-profile sporting events come to town.

So how do insurers approach this home-sharing scenario?

According to the I.I.I., some insurers may allow policyholders to use their property as a rental for a one-time, special occasion like the Super Bowl, as long as the insurer is informed about it ahead of time.

Other insurers, while allowing this type of arrangement, may insist on other criteria being met, such as the homeowner acquiring additional insurance coverage.

Some insurers, though, will consider any rental of your home to be a business venture, requiring the purchase of a business policyÃ¢â‚¬“specifically either a hotel or a bed and breakfast policyÃ¢â‚¬”because a standard homeowners insurance policy excludes losses arising from the operation of a business.

In the words of Jeanne Salvatore, senior vice president, Public Affairs, and consumer spokesperson for the I.I.I.: